How to Register an LLP in India: A Complete Guide
Introduction
The Limited Liability Partnership (LLP) structure is one of the most popular choices among startups, consultants, and growing small businesses in India. If you’re looking for a flexible business structure that offers limited liability, minimal compliance, and no requirement for capital contribution upfront, an LLP might be your best option. Learn how to register a Limited Liability Partnership (LLP) in India.
CA Shweta Makwana and the team at Makwana Sweta & Associates are here to help you understand the full process of LLP registration and provide Chartered Accoutant Services in Mumbai and across India.
What is an LLP?
A Limited Liability Partnership (LLP) is a hybrid legal structure that combines the benefits of a company and a partnership firm. Introduced under the LLP Act, 2008, it allows entrepreneurs to run a business with multiple partners while limiting their liability to the extent of their contribution.
Why Choose LLP?
Here are a few reasons why registering an LLP is a smart move for many businesses:
- Limited Liability Protection: Partners are not personally liable for debts.
- Separate Legal Entity: The LLP can own property and enter into contracts independently.
- Lower Compliance Burden than Private Limited Companies.
- No Minimum Capital Requirement.
- Tax Benefits: LLPs are taxed at a flat rate of 30% without dividend distribution tax.
Eligibility Criteria to Register an LLP in India
To be eligible to register an LLP:
- Minimum two partners required (at least one Indian resident).
- Designated Partners must have DIN (Director Identification Number) and DSC (Digital Signature Certificate).
- No restrictions on the maximum number of partners.
- The LLP must have a registered office address in India.
How to Register an LLP in India: Step-by-Step Process
1. Obtain Digital Signature Certificate (DSC)
Each Designated Partner must obtain a Class 3 DSC, which is required for signing the registration documents electronically.
Time Required: 1-2 working days
2. Apply for DIN (Director Identification Number)
Once you have the DSC, the next step is applying for a DIN for each designated partner through the SPICe+ form.
DIN can be obtained during the incorporation process.
3. Name Reservation (RUN – LLP)
Propose a unique name for your LLP via the RUN-LLP (Reserve Unique Name) facility available on the MCA portal.
- Names must end with “LLP” or “Limited Liability Partnership”
- Check for trademark conflicts and MCA naming guidelines
4. Filing the Incorporation Form (FiLLiP)
Once your name is approved, file the FiLLiP form (Form for incorporation of LLP) along with:
- Proof of registered office (rent agreement, utility bill)
- Identity and address proof of partners
- Consent of designated partners
- Subscriber sheet with partner signatures
This form also generates PAN & TAN for the LLP
5. LLP Agreement Drafting and Filing
You must file the LLP Agreement in Form 3 within 30 days of incorporation. This agreement outlines:
- Profit sharing ratio
- Duties, roles, and responsibilities of partners
- Decision-making mechanisms
6. Get the Certificate of Incorporation
Once the registrar approves all forms, you’ll receive the Certificate of Incorporation. You can then apply for:
- Bank account in LLP’s name
- GST registration (if applicable)
Documents Required for LLP Registration in India
From Each Partner:
- PAN Card
- Aadhaar Card
- Address Proof (Bank statement or utility bill)
- Passport-size photo
- DSC
For Registered Office:
- Utility bill (electricity/water/gas)
- Rent agreement or ownership proof
- NOC from owner
Post-Registration LLP Compliance
After incorporation, ensure your LLP stays compliant with these annual requirements:
| Compliance | Timeline | Form |
|---|---|---|
| Annual Return | Within 60 days of FY end | Form 11 |
| Statement of Account & Solvency | Within 30 days of 6 months from FY end | Form 8 |
| Income Tax Return | July 31 (Audit not required) | ITR-5 |
Failure to file these returns can result in penalties starting at ₹100/day per form.
Costs Involved in LLP Registration in India
| Service | Approximate Fee |
|---|---|
| DSC for 2 Partners | ₹2,000 |
| Government Filing Fee | ₹1,000 – ₹5,000 (depends on capital contribution) |
| Stamp Duty | Varies by state |
| LLP Agreement Drafting | ₹2,000 – ₹10,000 (depending on complexity) |
Makwana Sweta & Associates offers all-inclusive LLP registration packages at competitive rates.
Common Mistakes to Avoid
- Choosing a name without trademark check
- Missing the 30-day window for filing LLP agreement
- Not maintaining compliance post-registration
- Using incorrect residential address as the business address
Why Work with a Chartered Accountant?
Having a Chartered Accountant in Mumbai or elsewhere ensures:
- Proper document handling
- Seamless MCA coordination
- Ongoing compliance and taxation support
At Makwana Sweta & Associates, our team of tax consultants in Mumbai and across India has helped over 500 businesses register and manage their LLPs efficiently.
Final Thoughts on LLP in India
An LLP is one of the smartest structures for small businesses, partnerships, and service providers. It’s affordable, low on compliance, and offers protection that informal structures don’t.
If you’re planning to register an LLP in India, reach out to our expert team of Chartered Accountants in Mumbai and beyond to make the process smooth and hassle-free.